When Debt Strikes

There are a thousand and one articles out there telling you how to deal with debt; how to get it under control, how to recover your credit score, and how to move on from debt. But what happens if your debt catches up with you before you get the chance to get it under control. What id getting it under control wasn’t a feasible option, and now you have the bailiffs at your door? Hopefully, it will never come to that, but id it does, here are a few tips to help see you through this sticky patch.

Don’t Debt To Solve Debt

So many people fall into a horrid cycle of taking out a loan to cover the payments of another loan. Or a credit card to cover a credit card. All you are doing is passing the debt around and not actually getting rid of it or making it better. If you have to borrow money from somewhere, however, in an emergency, then ask family. As horrible as it is to do, your family probably aren’t going to put an interest rate on your loan, and you are much more likely to pay your mum back than the bank.

Consolidate

A consolidated loan is a loan that only covers the amount you owe. This means that you are left with one loan, with one interest rate to worry about. It’s not a fix, and shouldn’t be your first – or second – option. But it’s there nonetheless to help if you need a little bit more time.

Insolvency

If your debtors have come knocking, either physically or figuratively, then you need to be able to pay them back. If you have the money, but it’s tied up in property or material goods, then you need an Insolvency Lawyer, like the guys at Antony Batty, to help you liquidate those assets as soon as possible. If you don’t have enough money, cash or otherwise, then an Insolvency Lawyer is still a great idea to help negotiate on your part to prevent you from going bankrupt.

Sell

As horrible as it is to think about. You might have to consider cutting your losses and sell your business to the highest bidder. This is probably going to be a last-ditch attempt to level your debts, but try not to leave it until the last minute as that could mean you end up closing the doors for good rather than passing it on.

Further Legal Action

If the debt is going to court, you need to make sure you have good legal representation to help get you a deal, or time if the worst case is realised. You might not be able to get rid of the debt at court, but you do stand a chance to appease your debtors with a fair deal to them.